Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

WR Hambrecht & Co.
Hambrecht Says AMAT Failed to Predict Order Growth

(AMAT) Reit Hold We reiterate our Hold rating on Applied Materials with a $23 price target, assuming that the stock should sell at 8x estimated 2005 gross profits of $2.81 a share. The company reported its second quarter results with revenues of $2.02 billion vs. our estimate of $1.85 billion and EPS of $0.22 vs. our $0.19 estimate. Orders of $2.20 billion and FQ3 guidance of a 5%- 10% order increase met our expectations. Their guidance of $2.3 billion in revenues and EPS of $0.23-$0.25 was slightly above our estimate. While Applied Materials painted a very positive picture on the industry outlook and its market position, the shares may languish as management declined to comment on analyst questions about the possibility of a further slowing (or a decline) in order growth in the fourth quarter.